markyoung
Short

USDJPY Fibonacci-based Short entry

FX:USDJPY   U.S. Dollar / Japanese Yen
* demo account trade *

Short entry at -23.6% retracement of a rolling Fibonacci pattern generated automatically. The Fibonacci patterns are calculated using Weekly bars, overlaid here on a daily chart . Supporting signals are overbought RSI and candlestick patterns. If price drops to 0% line stop will be moved to breakeven. If price breaks below 0% line, target is the 50% line just above 106.

Underlying currency indexes DXY and JXY are also at fib resistance (according to my personal methodology) and can be seen on the screenshot below. Also below is a 4 hour chart with 24 hour fibs showing this potential reversal in more detail.
Comment:
Looking at the currency indexes DXY dropped below 0% line - the end of the most recent swing - which may now provide resistance. RSI on this index is overbought and has rolled over.
JXY has been a long decline recently and is now sitting on the -23.6% retracement of it's recent swing. RSI is oversold.

By my methodology, this is a high-probability point of reversal for USDJPY
Comment:
Zoomed in - fat green line is the Weekly -23.6% line, thin green line is the Daily -23.6% line. Price has retraced from these levels as of this post

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